DEPRECIATION 2. A telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchase price. If the equipment is depreciated over an eight-year period with salvage value of 5%, determine the following: a. Annual depreciation charge using the straight-line method. b. Depreciation charge during the fifth year using the SYD method.

DEPRECIATION 2. A telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation charges amounted to 3% of the purchase price. If the equipment is depreciated over an eight-year period with salvage value of 5%, determine the following: a. Annual depreciation charge using the straight-line method. b. Depreciation charge during the fifth year using the SYD method.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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